A large majority of CFOs and senior controllers intend to take advantage of the bonus depreciation provision included in the economic stimulus bill, according to a survey by Grant Thornton.

Three-quarters of the 530 CFOs and senior controllers surveyed by the accounting firm said their company has used or plans to use either the bonus depreciation deduction or the election to accelerate tax credits in lieu of bonus depreciation. The provisions were enacted as part of this year’s stimulus bill, the American Recovery and Reinvestment Act of 2009.

Half of those surveyed said they would use bonus depreciation, which allows businesses to immediately deduct half of the cost of many new investments in their business. A quarter of the surveyed executives indicated they would elect to accelerate research or alternative minimum tax credits in place of bonus depreciation.

“The large number of companies electing to accelerate credits is evidence that it’s been hard to make money in the down economy,” said Allen Wilson, managing partner of Grant Thornton’s strategic federal tax services practice, in a statement. “The option to accelerate credits in place of bonus depreciation is particular helpful for businesses without income that wouldn’t be able to take depreciation deductions.”


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